scholarly journals Financial Education Renaissance in Japan and the Role of CCFIS : A Policy Commentary

2018 ◽  
Vol 3 (No. 2 Oct 2018) ◽  
pp. 29-40 ◽  
Author(s):  
Shinichi Yoshikuni
Keyword(s):  
Interest Rates ◽  
Financial Literacy ◽  
Financial Services ◽  
Local Governments ◽  
Global Financial Crisis ◽  
Age Groups ◽  
Financial Education ◽  
Financial Fraud ◽  
Knowledge And Skills ◽  
Negative Interest Rates

Financial education became a global agenda after the global financial crisis, and is one of the important elements of the SDGs. In Japan, although we have established a comprehensive system of financial education, the level of financial literacy is not high enough in comparison to other advanced economies. Rapid aging of the society and the increase in financial fraud demonstrate stronger need for enhancing the financial literacy of general public. The Central Council for Financial Services Information responded by publishing the Financial Literacy Map which describes the necessary knowledge and skills regarding money and finance, targeting at different age groups. We also conducted the Financial Literacy Survey, the result of which was widely reported by mass media. Based on the aforementioned products of our work, the Council is conducting various seminars, and publishing materials aimed at protecting consumers from financial fraud by enhancing their financial literacy and at providing necessary knowledge and skills to cope with the era of the 100-year life. In this connection, we are faced with the issue of how to enhance the financial literacy of teachers in times of rapid financial innovation, as well as in the unprecedented financial environment, such as the zero/negative interest rates. In particular, FinTech could have the effect of causing reverse literacy gap between teachers and students. In order to deal with such challenges, the Council is collaborating with relevant public and/or private institutions, e.g., the Financial Services Agency, local governments, representatives of financial institutions, to revive the spirit of Meiji era, when prominent figures stressed the importance of money in life. We should aim at “financial education renaissance” in Japan.

scholarly journals ПІДВИЩЕННЯ РІВНЯ ФІНАНСОВОЇ ГРАМОТНОСТІ ТА ФІНАНСОВОЇ ОСВІТИ — ВИКЛИК СУЧАСНОСТІ

2019 ◽  
Vol 13 ◽  
pp. 429-438
Author(s):  
Т. А. Латковська
Keyword(s):  
Financial Institutions ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
General Information ◽  
Financial Knowledge ◽  
System Protection

У статті розглядаються питання фінансової грамотності та фінансової освіти, які на сьогоднішній день є актуальними та необхідними. Доводиться, що недостатнє володіння основами фінансових знань і загальною інформацією громадян про свої права та обов'яз­ки викликає недовіру до фінансових установ, небажання використовувати їх як інстру­мент забезпечення збереження заощаджень та підвищення рівня добробуту. Робиться висновок про потребу системного захисту фінансових прав та законних інтересів широ­ких верств населення, створення умов для підвищення фінансової грамотності та фінан­сової освіти, створення механізмів досудового вирішення конфліктів між споживачами фінансових послуг та фінансовими інститутами.   The questions of financial literacy and financial education, being to date actual and necessary, are examined in the article. Proved, that the insufficient possessing bases of financial knowledge and general information of citizens about the rights and duties is caused mistrust to financial institutions, unwillingness to use them as an instrument of providing of maintenance of economies and increase of level of welfare. Drawn conclusion about the necessity of system protection of financial rights and legal interests of wide layers of population, in conditioning for the increase of financial literacy and financial education, in creation of mechanisms of pre-trial decision of conflicts between the consumers of financial services and financial institutes.

scholarly journals The level of financial inclusion in Ukraine: Measuring access, quality, and usage of financial products and services

2021 ◽  
Vol 16 (2) ◽  
pp. 59-67
Author(s):  
Yuliia Shapoval ◽  
Andrii Shkliar ◽  
Oleksii Shpanel-Yukhta ◽  
Kateryna Gruber
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial Inclusion ◽  
Clear Understanding ◽  
Financial Products ◽  
Medium Level ◽  
The Global Financial Crisis

While financial inclusion is seen as a goal of socio-economic development, there is still no clear understanding of how to measure it. Following this concern, the paper deals with the computation of the financial inclusion index of the Ukrainian economy using an annual dataset spanning from 2008 to 2020 and following the Sarma methodology. The object of the study is a set of indicators of usage, access and quality of financial products and services. The obtained results demonstrate the medium level of financial inclusion. The improvement of financial inclusion is observed in 2012, 2013, 2020 (namely 0.55 – 0.56 in the range of 0 and 1). From 2015 (0.38) till 2018 (0.39), the revealed downward trend affirms that the withdrawal of banks from the market has deteriorated the level of quality and usage of financial products and services. Financial inclusion declined during the cleaning up of the banking system in 2014–2016, just as it did after the global financial crisis in 2009–2010. Despite the development of the payment infrastructure, there is a need to diversify access, increase quality, and quicken the usage of financial products and services due to existing distrust in national financial institutions. Improving financial literacy and consumer protection, and closing regulatory gaps in the non-banking sector are seen as ways to enhance financial inclusion. Thus, financial regulators should establish an upward trend in financial inclusion that will ensure full access to formal financial services and will not adversely affect the stability of financial system.

scholarly journals Poverty Alleviation Fund in Financial Inclusions of Nepal

2019 ◽  
Vol 2 (2) ◽  
pp. 90-98
Author(s):  
Nahakul K.C.
Keyword(s):  
New Product Development ◽  
Financial Literacy ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Secondary Data ◽  
Holistic Approach ◽  
Financial Education ◽  
Financial Inclusion ◽  
Services Research ◽  
Government Organizations

This research was an attempt to take a deeper look at people’s experience of existing financial services and their providers. In addition, it aimed to identify definitive indicators that would help to create a roadmap for the delivery of effective financial services in Nepal. The study emphasized that ensuring financial inclusion is an arduous task and requires a holistic approach encompassing strategies for awareness raising, financial education, technical advice on different dimensions of money management, debt counseling, saving mobilization, provision of affordable credit services, research and development. In order to promote financial inclusion, there is a need to develop and apply specific strategies to expand the outreach of their services using combinations of lending methodologies, market led approaches to new product development, fostering linkages with local communities and promoting the use of technologies. This paper is basically descriptive and analytical in nature and based on a number of policy models and provisions formulated in recent years for promoting financial inclusion in Nepal. Secondary data is used, drawn primarily from, Poverty Alleviation Fund, Department of Co-operatives and different departments. Micro finance institutions should give equal priority for non-financial services such as financial literacy and provision of entrepreneurship skills through government and non-government organizations that ultimately helps to utilize micro-credit into productive sectors.

scholarly journals Does the content of financial literacy education resources vary based on who made or paid for them?

2020 ◽  
Vol 19 (3) ◽  
pp. 192-210
Author(s):  
Gail E Henderson ◽  
Pamela Beach ◽  
Lucy Sun ◽  
Jennifer McConnel
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Global Financial Crisis ◽  
Literacy Education ◽  
Financial Services Industry ◽  
Non Profit ◽  
Use Of Resources ◽  
Services Industry ◽  
Industry Affiliation ◽  
The Global Financial Crisis

In the decade since the global financial crisis, an increasing number of jurisdictions have added mandatory financial literacy education to school curricula. Governments recognize that this increases the burden on teachers, who may also lack the confidence to teach financial literacy. One response is to encourage the use of resources produced or sponsored by the financial services industry. The concern is that these resources may promote the industry’s interest in maximizing profits and minimizing regulation over students’ interest in becoming empowered financial consumers. As a first step in investigating this concern, we compared resources from the Canadian Financial Literacy Database produced or sponsored by the financial services industry with those produced by government, non-profit organizations and individuals. We focused on online resources intended for use by elementary teachers and students to determine whether the key themes and messages conveyed vary based on who made or paid for the resource. We found that key themes are consistent across resources, regardless of industry affiliation, but that resources produced or sponsored by the financial services industry are more likely to exhibit a moralistic tone.

Some Aspects about Financial Knowledge of Undergraduate Students

2013 ◽  
Vol 2 (4) ◽  
pp. 40-62
Author(s):  
Elena Moreno-García ◽  
Arturo García-Santillán ◽  
Juan Pablo Munguía-Tiburcio
Keyword(s):  
Learning Styles ◽  
Undergraduate Students ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Management ◽  
Principal Component ◽  
Financial Education ◽  
Financial Knowledge ◽  
Important Indicator ◽  
Financial Issues

The purpose of study is to measure the level of financial literacy of accounting students at the Universidad Veracruzana; campus Mocambo, considering that financial education is the knowledge that people have on financial issues in order to solve everyday problems regarding financial management. The variables analyzed include age, gender, race, socioeconomic status, learning styles and student’s perceptions on financial services, the way they take care of their money and their knowledge of five key financial issues. Three hypotheses were raised, therefore, in order to test H1 we performed a factorial analysis with an extracted principal component; to H1.a the statistical procedure of linear correlation of Pearson r and t test are applied, and to H2 a Z test is performed. Although the theory suggests that the level of higher education gives the student a better understanding of the financial issues, this research however, proves otherwise. In fact, the range of “excellent money management” is below 50%. The findings suggest that there is no a good level of financial literacy in the population studied. This fact is contrary to expectations, because the student who studies public accountant is expected to have financial knowledge in these subjects, all this, in considering the subjects which integrates the curriculum related to the field of finance. Therefore this finding should be an important indicator for the academic authorities of the Universidad Veracruzana for corrective actions in this respect.

FINANCIAL LITERACY AND FINANCIAL INCLUSION EFFECTS ON STABILITY AND COMPETITIVENESS INDICATORS IN THE BANKING SECTOR: CROSS COUNTRY EVIDENCE FOR AFRICA AND THE WORLD

2021 ◽  
pp. 2150009
Author(s):  
JOÃO JUNGO ◽  
MARA MADALENO ◽  
ANABELA BOTELHO
Keyword(s):  
Credit Risk ◽  
Interest Rates ◽  
Financial Institutions ◽  
Financial Literacy ◽  
Financial Stability ◽  
Banking Sector ◽  
Financial Education ◽  
Financial Inclusion ◽  
The Stability ◽  
The Impact

Financial inclusion has allowed financial products with very high-interest rates and complex conditions to become increasingly affordable. Financial inclusion programs, which aim to reach all social strata, strongly expose financial institutions to risk and particularly credit risk. That said, additional interventions such as financial education of those included are needed. We aim to examine the impact of financial literacy and financial inclusion of households on bank performance. Specifically, we want to examine the impact of financial literacy on credit risk, competitiveness among banks and financial stability. The FGLS estimation results suggest that financial literacy and financial inclusion reduce credit risk and enhance the stability of banks, and regarding competitiveness, our results were inconclusive as they show different effects for each competitiveness indicator, although they point to improved competitiveness in some cases. This research allows policymakers to understand that individual financial attitudes can be reflected in the general welfare of financial institutions and encourages the intensification of programs aimed at improving household financial literacy.

DEVELOPMENT OF FINANCIAL LITERACY IN LATVIAN STUDENTS

2018 ◽  
Vol 6 ◽  
pp. 237-247
Author(s):  
Rita Kiseļova ◽  
Linda Mihno
Keyword(s):  
Information And Communication Technologies ◽  
Financial Literacy ◽  
Research Study ◽  
Financial Education ◽  
Communication Technologies ◽  
Knowledge And Skills ◽  
The Future ◽  
Information And Communication ◽  
Oecd Pisa ◽  
Financial Environment

The development of the information and communication technologies goes hand in hand with changes in the financial environment, development of the offering and opportunities, and an ever increasing necessity for financial education to develop and advance in the schooling sector. It is therefore essential for school curricula to include the acquisition of knowledge and skills which support the development of financial literacy in order to assure that students are able to take care of their financial wellbeing in the future. The main aim is to find out what financial skills Latvian students need to develop in order to improve their financial literacy.Based on research studies conducted by other researchers, the research study is being conducted to look for the necessary skills and knowledge which financial literacy comprises and which might assure financial wellbeing in the future regardless of the constant development of the financial environment. The data of the Financial Module of the year 2012 OECD PISA study, in their turn, are used to analyse the financial literacy of Latvian students at the age of 15 by finding out the knowledge and skills students in Latvia have with regard to finances. By calculating the percentage of students able to solve the tasks given to them, the research study analyses which tasks Latvian students find difficult and which ones are easy for them. The research study explains what knowledge and skills financial literacy comprises. The results show that Latvian students find analytical tasks difficult, i.e., tasks which require substantiation of their opinion, whereas they find it easier to deal with tasks where use of mathematical skills is sufficient.The possible reasons for the current situation are provided and suggestions for improving it are offered in the research study.  

scholarly journals Measuring and profiling financial literacy in South Africa

2018 ◽  
Vol 21 (1) ◽  
Author(s):  
Elizabeth L. Nanziri ◽  
Murray Leibbrandt
Keyword(s):  
South Africa ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
Multivariate Regression Analysis ◽  
Policy Makers ◽  
Financial Decisions ◽  
South Africans ◽  
Financial Behaviour ◽  
Using Data

Background: Microeconomic theories of financial behaviour tend to assume that consumers possess financial skills necessary to undertake related financial decisions. Aim and setting: We investigated this assumption by exploring the distribution of financial literacy among South Africans. Method: In the absence of a standard measure, a financial literacy index was constructed for the country using data collected on attitudes (towards), access to and use of financial services over the period 2005–2009. In a multivariate regression analysis, we used the index to examine the extent to which differences in financial literacy correlate with demographic and economic characteristics. Results: The index revealed substantial variation in financial literacy by age, education, province and race. Overall, demographic characteristics contributed up to 10% of the financial literacy differences among individuals in South Africa. Conclusion: These results can be used to guide policy makers where to place more emphasis in terms of financial education for South Africans.

scholarly journals Financial literacy and the use of financial services in Serbia

2021 ◽  
pp. 105-114
Author(s):  
Slađana Barjaktarović-Rakočević ◽  
Nela Rakić ◽  
Marina Ignjatović ◽  
Milica Stevanović
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Financial Education ◽  
Middle Income ◽  
Financial Decisions ◽  
Financial Decision Making ◽  
Financial Products ◽  
Decision Making Processes ◽  
Financial Decision ◽  
The Government

Financial services industry has always drawn a lot of attention, from possible investors, those who need financing, the government and general public. Globally, financial opportunities are becoming more attractive, but also more complex. The goal of this study is to analyze the use of financial services in Serbia. We argue that financial education and literacy are preconditions for the use of financial opportunities. Research has shown that people in Serbia are not well informed about how to make sound financial decisions. The reasons why people in Serbia do not use financial products requires to a greater extent and services special attention. In order to test the differences between people in terms of how well informed they are and which services they use and why, we conducted a survey. Our results show that people with salaries higher than 100,000 RSD are well informed but not motivated to invest. Individuals with middle income do not have enough trust and think that they are not well informed about different opportunities. Additionally, we found that men are better informed than women. This paper aims to provide an overview of the use of financial services in Serbia in order to improve financial decision-making processes and understand the different financial opportunities.

scholarly journals MICROCREDIT AS A TOOL FOR THE DEVELOPMENT OF FINANCIAL SERVICES FOR LOW-RELEASED POPULATIONS

2021 ◽  
Author(s):  
Mykola Miroshnik ◽  
◽  
Iryna Didenko ◽  
Keyword(s):  
Interest Rates ◽  
Financial Literacy ◽  
Financial Services ◽  
Net Income ◽  
Negative Consequences ◽  
Subsistence Level ◽  
High Interest Rate ◽  
The Poor ◽  
Short Period ◽  
Financial Characteristics

In the current coronavirus crisis, there is an exacerbation of economic and social problems that provoke a deterioration of the situation in a country with poverty. In such circumstances, the poor are particularly vulnerable, whose income for survival and so below the subsistence level. The loss of even a small source of income can lead to negative consequences. In such conditions, the task of the state is to adapt social policy to such changes, taking into account the capabilities of the financial sector. One of the rather new for Ukraine, but already popular tools for the development of financial services and financial inclusion for such a social group is microcredit. This article is devoted to his research, which provides a theoretical analysis of the nature and main features of microcredit, their main representatives (microfinance organizations and their brands) in Ukraine and their financial characteristics. In essence, this is a type of consumer loan that is provided for a relatively short period (up to one month) at a fairly high interest rate (average 2%) per day in the amount of less than one minimum wage. At the same time, there is a growing popularity of remote (online) service, which involves minimal time and does not require many documents from customers. The main providers of such services are microfinance organizations, whose presence are constantly growing in the market and are characterized by diversified activities – sometimes represented by several brands. A study of the top 10 leaders showed fluctuations in daily and annual interest rates, and a study of their net income – the profitability of this type of business over the past two years. In this regard, there is a need to increase attention to their activities by the main regulator – the National Bank of Ukraine. Despite existing measures to increase consumer protection in the process of obtaining microcredit services and prohibiting unethical actions of collectors through debt collection, it is recommended to develop a system for identifying and preventing credit risks to prevent future financial losses and intensify information campaign to increase financial literacy of the poor.

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